Assume again that currently East Coast Yachts operates at full capacity and next year plans to grow at the sustainable growth rate you calculated in 2. However, net plant and equipment cannot increase in proportion to sales because it is not possible to buy part of a new plant or equipment. Hence, to increase production, East Coast Yachts must install a new assembly line at a cost of $3,500,000. Calculate EFN for East Coast Yachts.

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Certainly I can help you calculate the External Financing Needed EFN for East Coast Yachts in this scenario External Financing Needed EFN is the amoun... View the full answer